Committee constituted to review SROs

ISLAMABAD: Federal Board of Revenue (FBR) has told National Assembly that a committee, headed by FBR Chairman, has been formed to review SRO regime to identify tax concessions.

In a written reply to the question of Rai Hasan Nawaz Khan, the Ministry of Finance told the House that a report is being prepared on tax expenditures for which expression of interest has already been advertised. A number of professional bodies have offered to conduct the study.

The House was informed that cost of Customs duty exemption in 2012-13 was Rs 129 billion while Details of Income Tax and Sales Tax exemptions in financial year 20123-13 was Rs 119.829 billion.

The House was informed that the above mentioned committee will submit a comprehensive plan by December 31, 2013. It is a fact that exemptions from Customs duties are allowed through Statutory Regulatory Orders (SROs) and their cost to the exchequer runs into billions. These SROs are issued under Section 19 of Customs Act, 1969 which empowers Federal Government to exempt whole or any part of Customs duty chargeable on imported goods, the Ministry added.